Tax deductions for primary producer deposits

Overview

The farm management deposits (FMD) scheme allows eligible primary producers to set aside pre-tax income from their primary production activities during years of high income. The income can then be drawn in future years as needed.

Primary producers can include FMDs as part of their risk-management strategy.

Check if you can apply

To be eligible for the FMD scheme, you must be:

• carrying on a primary production business at the time you make a deposit
• an individual (either as a sole trader, a partner in a partnership or a beneficiary of a primary production trust) – companies and trusts are not eligible (Note: FMDs cannot be made jointly with another person or people)
• have taxable non-primary production income not exceeding $100,000 in the income year you make the deposit.